Month: May 2016
-
How to format a Profit and Loss Statement for a small business
An accounting question came up yesterday while I was preparing a compilation of year-to-date profit and loss statement for a new small business client. The business is just started and has some income to report but had incurred little actual expenses yet. The expenses were summarized simply listed as “Operating expenses” as a single line item…
-
Marijuana tax accounting
Tax accounting for the growing marijuana industry is a hot topic. Federal Internal Revenue Code Section 280E says marijuana-dealing taxpayers get no deduction for many business expenses. This means that tax planning is more important than for other businesses.
-
Help wanted with 401(k) plans
The administrative branch of the federal government is behind a recent curious effort by the Department of Labor to cut retirement plan fees. It seems to be a case of “it’s not broke but we’ll fix it anyway and see if it turns out better”. Proponents argue that – all other things remaining the same…
-
Tax planning for young high income individuals
Our tax system is designed to limit the tax reducing opportunities for high income individuals. The higher our income, the more difficult it it to reduce our taxes through traditional tax planning tools. First, to help frame the discussion, I use the term “tax efficiency” rather than “tax savings”. The difference is subtle but better…
-
IRS admits erroneous tax penalties
IRS announced today that a software error is causing some small business taxpayers to receive a tax penalty notice for late filing and payment of second quarter payroll taxes. IRS is working to resolve the issue and it will correct the erroneous penalty assessments in the near future. Those affected will receive correspondence when the…
-
Warning to New Jersey registered charities
New Jersey registered charities may wish to double-check their listing in the online NJ Charities Registration web page. Recently the NJ Charities registration Section purged their online directory list and removed any organizations if any prior years’ CRI filing was not received. They continued to accept subsequent annual filings and apparently did not provide notice to…
-
You don’t need a social security number to buy health insurance
The long version and the short version of videos that provide the same information to a question I receive at least several times each week: you do not need to have a social security number to buy health insurance! This is true whether you are in the U.S. or not in the U.S. Citizenship, passport status…
-
After the final no
“After the final no there comes a yes And on that yes the future world depends”. These are the opening lines in a poem titled “The Well-dressed Man with a Beard” by Wallace Stevens, 1942. These lines are often quoted alone; the rest of the poem seem obscure and insignificant to me.
-
Updated tax services engagement agreement
This past month I’ve work hard to balance what appears to me to be a shift in fundamental client demands surrounding tax services with the legal requirements for income tax return preparers. The background of the issue is covered in more detail in this previous blog post. While I work primarily as an adviser, I must…